The question of whether steel is a “precious metal” arises because the term implies high value and importance, which steel possesses in the industrial world. However, the classification of metals is based on specific chemical and economic criteria. To understand steel’s place, one must look past its utility and examine the standards that define a metal as precious.
Defining Precious Metals
A metal earns the designation “precious” by meeting strict criteria centered on its scarcity, economic role, and chemical nature. The primary factor is extreme rarity, meaning the metal is found in very low concentrations within the Earth’s crust. For example, gold is present in parts per billion, unlike more abundant elements.
This scarcity directly contributes to the second factor: high economic value. This value allows these metals to function as a store of value and an investment commodity. Gold, silver, and the platinum group metals are traded internationally as bullion, serving a purpose beyond their industrial applications.
Precious metals are also characterized by their chemical inertness, which is a resistance to oxidation, corrosion, and rust. This non-reactive property allows them to maintain their luster and integrity over long periods, making them ideal for jewelry and sensitive electronics.
The Composition and Classification of Steel
Steel is not a naturally occurring element but an alloy, primarily composed of iron and a small percentage of carbon. The carbon content typically ranges from 0.02% to just over 2%, and this addition improves the strength and hardness of pure iron. Iron, which forms the majority of the alloy, is one of the most abundant elements on Earth, making up about 5% of the crust.
Because of its composition, steel is classified as a ferrous alloy, meaning it contains iron, and is categorized as a base metal. Base metals are common and easily produced. Their value is derived almost entirely from their industrial use, rather than their inherent value as a commodity. The global production of raw steel is measured in billions of tons annually, underscoring its role as the most widely used material.
Why Steel Does Not Meet the Criteria
Steel fails to meet the criteria of a precious metal primarily because of the overwhelming abundance of its main component, iron. The sheer scale of iron ore deposits and the ease of turning it into steel mean the material is inexpensive to produce. It is valued by the ton, not by the ounce like gold or platinum. This massive availability stands in stark contrast to the scarcity of precious metals.
The second disqualifier is steel’s chemical reactivity. Unlike the inertness of gold, iron is highly susceptible to oxidation, commonly known as rusting. While stainless steel alloys are engineered to improve corrosion resistance with elements like chromium, the base material remains fundamentally reactive. This tendency to degrade over time separates steel from the durable, non-reactive metals that form the precious metal category.